Abstract [en]

The aim of this dissertation is to do a market comparison between logistic and other industrial property from the perspective of investment risk, mortgage rate, yield, leases and the importance of location. Interviews were carried out with representatives from six segments which are logistic property owning logistic companies/investors, companies owning property of industrial- warehouse or production, assessment institutes/banks, property brokers, logistic companies and logistic development organization/property developers. The interviews were conducted between the 17 of April and the 8 of May 2015. Logistic property is in general seen as a better and safer investment than other industrial property in the banks point of view. Other industrial property can be many other kinds of property such as tire storage, sawmill, industrial production which can be high risk investment and have worse alternative usage than logistic property, although logistic property and industrial warehouses does not differ very much compared to industrial production property. The mortgage rate is lower for industrial property than it is for logistic property and the yield is higher which suggests that the general risk is higher for industrial property compared to logistic property. The general opinion of companies who own property for industrial warehouses and production and property brokers is that the banks have high requirements on equity. The banks do not want to mortgage more than 60 % of the property value and often not more than 50 %. The banks do not mortgage to same mortgage rate that they used to do for 7-8 years ago. The market for logistic property is otherwise hot and there are many players who want to enter the market and get logistic property in good locations. Logistic property are now being built on speculation, which combined with low interest rates making it advantageous to invest in property that may lead to increased competition. Due to logistic property is being built on speculation there is a risk of too high rate of establishment in some places in Sweden. The most value-influencing factors of logistics property is location, the lease, and cash flow.